Credit cards are a great way business owners can manage expenses. Often times, it is much easier and faster for start-ups to open a credit card account than to establish a secure line of credit from the bank. When paid on time, credit cards are a good way for business owners to establish credit in a business’s name. If you own a small business, it is wise that you carry more than one business credit card so as to maximize the potential of each one for the overall benefit of your business. For example, consider having one card with 0% APR offer or a low interest rate for carrying balances, and a second card for expenditures that you will repay fully at the end of each month. Having these two types of credit cards can help you manage costs and avoid debt in the long run. There are many choices out there when it comes to credit cards, but the key is how you plan to use them for your business. To start off on the right foot, determine your spending habits and how you plan to pay charges each month before you sign up for any credit card account. There are perks to owning business credit cards. For example, if you are carrying balance and have good credit some card issuers offer a low interest rate. Others, on the other hand, have fixed rates which can benefit you as an entrepreneur when the rates rise. Don’t hesitate to research the credit cards that are out there. Know exactly what they offer and how payments will be made. Read the fine print and if you need help in determining which credit card for you don’t hesitate to ask. Strategy is key when using credit cards. Over time, business credit cards can help your small business build a credit history with business credit bureaus so that your business will have a credit history of its own, instead of being linked to your personal credit history. Good luck!
Exponential growth occurs when the growth rate of the value of a mathematical function is proportional to the function’s current value. In business, the exponential growth of your company can be derived from the Enhancement Plan (four E’s of Business Ownership). A Business Enhancement Plan is the strategy that an independent third-party creates to reach the goals and objectives of a business. In order to enhance the growth and productivity of a business it is crucial that you have an open mindset and think exponentially. What this means is that you must ask yourself: “How can I double my revenues this year?”. Using the right information in right order at right time allows you to take control of your business’ cash flow and ultimate value. As an entrepreneur, you must be fully committed to the growth of your business. Lack of financial resources, knowledge, or skills should not hinder your desire for the exponential growth of your business. Seek help when you find yourself stuck in a rut. Here in the Inland Empire, there is an organization by the name of Small Business Development Center where you can find all kinds of great information. From training to consulting get in touch with the “masterminds” in your area. Experts in the field can provide advice and help evaluate and examine your business to boost leads, prospects and revenue. By seeking help you can discover limitless opportunities to create revenue and grow your business.
When selling your company, one of the most important value drivers to discuss is your customers. Understanding who your customers are is essential for any business negotiation. You must identify the profile, size, and engagement tactics you use to acquire new customers. Another important aspect is addressing how customers are lost. Losing customers too quickly can endanger the company’s profits. Since customers are what makes any business successful, you must make sure your business and customer base have a close relationship to keep customer numbers high. Regular sustainable customers equals a better chance of a successful sell.
2. Industry & Markets
It is essential to be able to comment on the size of addressable market. This means that you must have a sense of the number of potential customers and trends in that space. If a company fills a definable niche, commands a special leadership position in a niche or niches, or has strong and favorable brand awareness in its market, the business will most likely enjoy higher profit and growth rates. Make sure to show that your company tracks along with the general economy because this will show private equity investors that your company is not stagnant or subject to customer discretion.
If a supplier can go straight to your customers it will make investors think twice about any negotiation. Private Equity investors want to see a fundamental, tangible reason why your business exists. What makes your business stand out from the rest? In order to establish a successful sell, you need to demonstrate that your firm is addressing its customers needs.
Effectively addressing the competition surrounding your company will increase the chances of it being sold. Discuss how you differ from them with concerns to service, price, and location. If competition is low or does not exist in your area you must know why your customers are buying your services. The important question here is why your company exists. Knowing the answer to this question can increase the value in your business.
5. Management & Financials
A successful deal consists of an understanding of key holders and the management of a company. Private Equity firms will want to get to know the management team to make sure there is a fit. Financially, the numbers need to be reliable. The more confident a private equity firm feels in a company’s ability to track numbers, the more confident they will feel about the deal.
Hello everyone. I am happy to announce that I have partnered up with Ms. Raven Blair Davis owner of Amazing Women of Power Radio Network and I will be having my own radio slot under Amazing Men of Power which will be called “Making Businesses Profitable Enjoyable and Sellable.” You can tune in every Friday at 11:30 a.m. and again at 5:30 p.m. Pacific time. You can find the link on my website at www.optimizationcoachcochran.com. There will be guests each week who will share their journey as entrepreneurs and at the same time, give us tips on improving our own business strategies. The story behind this amazing partnership was by networking, but mostly because I believed in myself. For those of you who follow my blog posts each week, you may recall that a few weeks back I had written about the importance of networking. Networking is a powerful tool that you as an entrepreneur can use to help grow your business. Networking consists of connecting with people and building relationships which often leads to referrals and new business. It allows you to get to know professionals in your area and connect with those that share similar business interests. The key about networking is that you are the one that makes it happen. It’s up to you to generate leads and build relationships by going out there and meeting people. I followed my own advice and went to a business convention in Los Angeles which was called “Next Level.” At this convention I learned how to market my business and also believe in myself and my capacity to excel as an entrepreneur. By asking questions and talking to other business men and women I was able to meet the right people and could not be happier. The key here is believing in yourself. Go out there and get things done because if you don’t no one else will. Until next time!
There are both pros and cons to most decisions in life and this is no different. So it requires proper planning, analyzing, and thinking when deciding why you want to become an entrepreneur.
Depending on who you talk to there are an unlimited number of questions to answer why become an entrepreneur. Some people become entrepreneurs for financial reasons while others may do it for personal satisfaction.
Here are the reasons why I became an entrepreneur:
1. There is nothing more exciting than being an entrepreneur. If you are a thrill seeker and someone that loves the ever shifting pace of life, you will be an entrepreneur. For me, being an entrepreneur is the pulse that keeps the blood running through my veins. I am not happy in any other situation.
2. As an entrepreneur you have the freedom to make your own decisions. With that though comes the success and the failure. If you are the type of person that is okay owning responsibility in both good situations and bad, then you won’t have to ask yourself why become an entrepreneur because you will already know the answer.
3. When you are your own boss, you call the shots. This will enable you to make decisions quicker and capitalize on opportunities as they present themselves. I think this is my favorite part of being an entrepreneur. When working in corporate style settings, you have so many hoops to jump through. It seems like you can’t even sharpen a pencil without having to ask for permission. But as an entrepreneur with your own company, you don’t have to worry about this type of environment.
For me, this decision was extremely simple. I like the excitement I love the freedom, and I’m making decisions.
Entrepreneurship isn’t for everyone, however. This profession requires patience, dedication, hard work, and long hours. My next post will discuss the characteristics needed in order to succeed in this business venture.